MATRIX ORGANIZATION: MOST IMPORTANT FEATURES - JOB - 2025

The matrix organization is a business structure in which employees participate in specific projects while continuing to attend to their functions. Dual channels are used: on the one hand, the main hierarchy; and on the other, specific programs.

Generally, these programs or portfolios represent the services that a company offers. Once the customer's need and service have been defined, the company starts a project in which it forms a multidisciplinary team with personnel from different departments to carry it out.

An organization of this type maintains the structure of its payroll of employees grouped by function as in traditional organization charts, but is also prepared to adapt to changes and market demands to satisfy them much faster.

In other words, it offers the advantages of flexibility and greater security in the individual control of projects for their successful completion, and also offers opportunities for development and advancement within the organization.

This practice promotes the delegation of responsibilities, interdepartmental collaboration and communication, the sharing of resources and skills, and a dynamic work environment.

The matrix organization became popular after 1970 to adapt the production operations of companies to a faster response to customers.

The companies that made this decision used to keep this internal structure secret to avoid possible financial instabilities, both from conservative corporate criticism and from the copying of their structural model by the competition.

Eight main features

1- It allows to operate based on projects

This element is the one that probably modernizes and streamlines the traditional linear hierarchy organization charts, giving rise to the flexible and dual structure of the matrix. The company can be working on several projects at the same time without affecting its departmental functionality.

The birth of a project is followed by the creation of a work team with people of different skills and knowledge. This equipment is temporary and is assembled to meet customer needs.

Generally, the time scheduled for the total or partial completion of the project is met. Once the project is complete, members can be reassigned to other programs. Workers never cease to belong to their original department.

2- Dynamism of talents and resources

Qualified personnel and resources can be shared between functional departments and project teams. In this way they are used more efficiently and by more units within the organization.

3- Communication and free flow of information

The matrix structure allows employees to communicate more quickly despite departmental boundaries. That is, information flows both up the organization and sideways.

The useful information of the same project is not necessarily enclosed; it can be available to everyone. This avoids information silos and creates a cooperative work environment that integrates the organization.

4- It allows the existence of two managerial figures at the same time

Each new work team is assigned a project manager, who acts as the leader of the team members during the project. The functions of this person in charge are not subordinate to or precedence over the permanent managers of each department.

So, at times, an employee can have two bosses at the same time. For this system not to conflict, it is important that the parameters of division of authority and responsibility between the two bosses are well defined.

5- Develop future managers

The assignment of temporary tasks to project members makes the matrix organization an excellent setting for training future managers, since they are easier to identify in a multidisciplinary work environment.

6- The weight of responsibilities is delegated

The project manager is directly responsible for its completion within the established time and budget. This calls for strong leadership to ensure compliance with the functions.

The success of the project will depend on the important decision making of the manager, regardless of the hierarchy of the organization. This modality also decentralizes functions and processes, giving way to a certain level of operational independence throughout the structure.

7- It offers faster and more efficient responses

The formation of interdisciplinary teams for a new project can happen quite quickly, and the program is likely to start almost immediately.

The projects are based on the particular services and products that the company already uses to offer; Thus, staffing and job startup time is minimal and does not need bureaucratic approval from a linear chain of command.

This allows the company to quickly adapt to what the market demands, deliver satisfactory quality results in much less time and start another project immediately, if necessary.

This also allows the existence of many projects developing in parallel.

8- The end of a project is not the end of the job

Once a project closes or ends, the company does not have to worry about the relocation of personnel, since the employees never stopped belonging to their jobs. This lowers costs for the company.

In some companies the figure of the special payment or bonus per project is used for each member of the team, but they are independent remunerations of the regular salary of the employee.

In others, both the permanent job and the assignment to a team or project are part of the job functions.

Examples of companies with matrix organization

Nestle

The Swiss multinational company Nestlé is the largest food producer in the world, and has more than 29 registered brands with annual sales of more than 1.1 billion dollars. This corporation operates under the structure of the parent company.

Nestlé's decentralized organization allows subordinate branches to enjoy high-level independence.

Even though big strategic decisions are made at the highest levels, many day-to-day operations are delegated to local units or departments.

ABB Group (ASEA Brown Boveri)

This is a multinational corporation in the branch of automated industrialization (robotics, electrical energy and electronics) that since the 80s has made several important mergers and acquisitions of companies that have allowed it a good growth.

The matrix organization was introduced in 2001 to integrate global activities and decentralize operations from its headquarters in Switzerland.

This was successful, allowing him greater proximity to customers and a much faster and more efficient decision-making process.

It is one of the few large companies that has been able to implement the structural matrix. Its operations are organized into four global divisions, which have formed specific business units focused on a particular industry area or product category.

References

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